KEY POINTS
- Dangote Petroleum Refinery cut diesel price from N1,800 to N1,600 per litre amid rising competition in Nigeria’s fuel market.
- Increased fuel imports and a legal dispute over import licences issued by NMDPRA intensified pressure on local pricing.
- Global crude oil price fluctuations also contributed to the downward adjustment in diesel pricing.
The Dangote Petroleum Refinery has reduced its gantry price of automotive gas oil (diesel) by N200 per litre, bringing the new rate down from N1,800 to N1,600.
The adjustment, which took effect on May 26, was confirmed by Platts, a global benchmark provider for commodity and energy pricing.
The development was also corroborated by Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN.
Price Cut Reflects Intensifying Competition in Nigeria’s Downstream Petroleum Sector
According to stakeholders, the price cut reflects intensifying competition in Nigeria’s downstream petroleum sector, as newly imported fuel shipments begin to flood the market. Several fuel-laden vessels reportedly arrived over the weekend, increasing supply pressure on locally refined products.
The move also comes against the backdrop of a legal dispute involving import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to fuel marketers and the Nigerian National Petroleum Company, NNPC. Dangote Refinery had reportedly taken legal action challenging the issuance of five import licences to marketers.
Industry sources noted that the increased availability of imported diesel has forced refiners to adjust pricing to remain competitive.
Global oil market trends also played a role, as Brent crude prices softened, falling to $95.05 per barrel on May 27 from $98.04 the previous day. Analysts say volatility in global crude markets has been driven by ongoing geopolitical tensions affecting supply routes through the Strait of Hormuz earlier in the year.
